snam.

it
2014 2017 Strategy & Targets



March 19
th
, 2014
2
Sustainable and profitable Growth
through disciplined and selective Investments
Carlo Malacarne
Chief Executive Officer
Agenda
3
Business Environment
Snam Business Development
4
Key Pillars of Snams Growth Strategy
Delivering sustainable and profitable growth
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Exploiting high-quality investment opportunities in Italy
Focusing on two main European gas corridors
to integrate our diversified and valuable asset portfolio
Maintaining cost control in the context of a growing asset base
Driving value creation for all stakeholders
Preserving a solid and efficient capital structure
Selective
investments
Operational
efficiency
Financial
discipline
Attractive
returns
Snam Business Development
Business Environment
Agenda
5
Key Themes in the European Gas Market
6
Increasing dependence on imports and need for flexibility
Source: OECD/IEA, World Energy Outlook 2013 New Policies Scenario
1
Snam elaboration; data including Italy, France, Spain, UK and Germany
Gas supply trends Gas demand trends
0
200
400
600
2011 2015E 2020E 2025E 2030E
Domestic production
Net import
[bcm]
CAGR 11 30
~ 0.5%
Peak demand
1
Gas demand in EU
CAGR 11 30
~ 2.0%
1,5
1,6
1,7
1,8
1,9
2010 2011 2012
280
320
360
400
2010 2011 2012
Total demand
1
[bcm/day] [bcm/year]
Germany
21%
UK
15%
France
15%
Spain
13%
Italy
22%
Austria
9%
Belgium
6%
Northern Europe
65% of import needs
in 2020
Southern Europe
35% of import needs
in 2020 North
Africa
Common Goals and Provisions
of the EU and Italian Energy Policies
7
Enhance competitiveness and security of supply
Source: European Commission, Regulatory Proposal: Strategic guidelines for trans-European energy infrastructure, October 2011
Unbundling
Ownership unbundling (OU)
Independent transmission operator
(ITO)
Independent system operator (ISO)

Adoption and certification of Ownership
Unbundling for regulated activities
Implementation of 3rd Gas Directive
Harmonisation & Cooperation
ACER and ENTSOG establishment
Coordination of network development
plans
EU network codes

Active participation in ENTSOG for
rules harmonization and network
code development
Coordination of development plans
(TYNDP)
Infrastructure development
Diversification of supply sources
Bi-directional flows
Interconnection between national
markets
Infrastructure flexibility (N-1)

Enhancement of storage capacity
Incentive for new investments
Market liquidity
Cooperation with exchange operators
Entry-exit system
Market-based balancing regime
Gas exchanges

Entry-exit system since 2001
New balancing regime
Storage services also for industrial
and power customers
A visible and stable Regulatory Framework
8
2012
RAB breakdown
Storage
4 year regulatory period
started in J anuary 2011
6.7% real pre-tax WACC
4% higher remuneration
on new investments
Transport
4 year regulatory period started in J anuary 2014
6.3% real pre-tax WACC on RAB at 31/12/2013
7.3% real pre-tax WACC on new investments
1% - 2% higher remuneration on new investments
Regasification
4 year regulatory period started in J anuary 2014
7.3% real pre-tax WACC on RAB at 31/12/2013
8.3% real pre tax WACC on new investments
2% higher remuneration on new investments
Regulatory
period
2014 2015 2016 2017 2018 2019 2020
Distribution
6 year regulatory period started in J anuary 2014
6.9% real pre-tax WACC for distribution (reference RAB t-1)
7.2% real pre-tax WACC for metering
Clarity and
stability
Attractive
incentives
Long term
visibility
Low risk profile
Diversification
of regulatory
regimes
85% of RAB has regulatory criteria set for 4/6 years
~63%
~0.4%
~20%
~16%
KEY FEATURES:
Revision of risk-free rate
Italy is situated at the Heart of the EU Energy Corridors
9
... positioning Snam to benefit
from favourable European gas market dynamics and regulation
South North gas interconnections
(South Western Europe)
1
South North gas interconnection
(Central Eastern and South Eastern Europe)
2
Southern Gas Corridor
(Caspian region)
3
Interconnection plan of Baltic energy market 4
1
4
2
3
Snam Business Development
Business Environment
Agenda
10
Selective Investments
Capex in Italy
European Developments
Operational Efficiency
Financial Discipline
Attractive Returns
11
Snams Assets Portfolio
to provide Diverse Investment Options
Distribution
Storage
Transport
Regasification
International
assets
A well balanced and
diversified portfolio of
investment options
granting profitable
growth opportunities in
the context of a solid
and efficient capital
structure
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Strengthen security, liquidity, flexibility
and service quality of the gas system
Snam Investment Priorities in Italy
Increase capacity for:
Modulation services and peak demand
control
New services for industrial customers
Supporting gas swaps in Europe
Optimize utilization of regasification plant
offering integrated services
Develop new balancing services to
enhance flexibility
Selected projects to meet capacity
requirements and supply source
diversification
Facilitate technical and commercial
swap among different supply
sources
Development of reverse flow
capacity to create conditions for the
gas transit to European markets
Transport & LNG Storage
12
Distribution
Development of new distribution
network or new connections
Further improvement of service
quality also through smart metering
project
Portfolio optimization

Consistent with the EU and Italian legislative framework and market trends
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

1.3
4.7
2014 2015-2017
3.6 0.9 1.5
Transport Storage Distribution

Consolidated Capex Plan in Italy 2014 2017
13
1
RAB evolution calculated assuming annual inflation rate in 2014 2017 of 2% and on the basis of the current approved regulatory frameworks
2
On the basis of the current approved regulatory frameworks
2013E 2014E 2015E 2016E 2017E
RAB with higher remuneration
RAB with base remuneration

CAGR 3.3%
31%
37%
[bn]
2014 2017: 6.0 billion
75%
Consolidated RAB
1
Capex breakdown
2
~20% ~80%
Base remuneration Higher remuneration

Organic Capex in Italy

[bn]
Strong programme to fuel sound and profitable growth in our asset base
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

2014 2017 Capex in Italy and Remuneration Scheme
1
Expansion of existing fields
+4% for 8 yrs
Development of new fields
+4% for 16 yrs
Others 6.7%
Metering
7.2% remuneration
Distribution
6.9% remuneration
74%
26%
44%
13%
43%
40%
39%
21%
14
2014 2015 2017
~2.9 bn ~0.7 bn
Transport
2014 2015 2017
~0.6 bn ~0.3 bn
Storage


2014 2015 2017
~1.2 bn ~0.3 bn
Distribution


1
Based on the current regulatory framework and gross of subsidies
Remuneration for
new investments
7.3%
Remuneration for
new investments
6.7%
Regional & national develop.
+1% for 7 10 yrs
Import & export capacity develop.
+2% for 10 yrs
Others 7.3%
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

15
Main projects
Po Valley Infrastructure (~450 km )
Empowerment/construction of compressor stations (~100 MW)
Main projects
Length: ~420 km
Installed power capacity: ~30 MW
Capacity at entry points from South
+8 Bcm
New pipelines
New compressor stations
Main Projects in the Transport Business
South North developments
North gas market and reverse flow capacity
developments
Passo Gries Tarvisio
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Gas Flow Trends in Italy
Snams network set to start playing a transit role
16
Gas Demand
CAGR 13 25
~1.0%
Import
CAGR 13 25
~2.0%
5
18
Passo Gries -
Connection with North
Europe
Tarvisio - Connection
with North East
Europe

40*
18*
Passo Gries -
Connection with North
Europe
Tarvisio - Connection
with North East
Europe

* Maximumdaily export capacity is 40Mscm/d
>2017
[Mscm/d]
~380
Italian gas flows
Expected to be fully operational by
the end of 2015
[Mscm/d]
Import transport capacity under construction
Expected export capacity beyond 2017
Target capacity development
Import transport capacity to accommodate
more diversified gas flows
Italian export capacity
Source: Italian Ministry of Economic Development and Snam estimates
[bcm]
335
2013
Graph TBU
0
10
20
30
40
50
60
70
80
90
2013A 2015E 2020E 2025E
Transit
Domestic production
Net import
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

281
316
2013 2017E
8.8 9.5
2.6
4.0
2013 2017E
Industrial users
Residential/regasification
New Storage Capacity to facilitate Gas System Liquidity
[Mscm/d]
+ 18% + 12%
Minerbio
Fiume Treste
Settala
Sabbioncello
Ripalta
Sergnano
Alfonsine
Bordolano
2014 2017 developments
[bcm]
11.4
13.5
Gas storage locations
17
Strengthen European interconnection projects offering more flexibility to the system
Support development of new services via an integrated management of transport and storage
capacities
Peak capacity Modulation capacity
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Distribution: selected investments to increase profitability
in a mature business
18
New connections on existing distribution network
Development of new distribution network
Smart metering project

2013 2017E
Consolidated redelivery points (millions)
5.9
~6.6
+ 12%
Italgas associates Italgas investments
2013 EBITDA pro rata: 127 mln*
2013 Contribution to income from associates: 59 mln
Italgas & Napoletana Gas
Italgas associates
Others
* Preliminary results
Growing activities
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Competitive cost structure
Strong cash flow generation
Substantial returns
Italgas: a clear strategy in the distribution business
19
Italgas to unlock further value
through tender process:
New legislative
framework pushes
concessions
renewal and
industry
concentration,
protecting asset
value
Italgas, through its
leading position in the Italian
distribution sector, grants:
Optimization of concession
portfolio
Economies of scale leading to
further operational cost efficiencies
Proactive approach to tender
process also leveraging on
potential partnership
A profitable asset base offering attractive investment options
to create further value
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Focus on North-South and East-West Corridors
20
Key pillars
Optimize the return on current
asset base in a broader
European context
Integrated management of the
North-South corridor,
coordinating capex and
commercial initiatives in the
framework of Snam-Fluxys
Strategic Alliance
Completion of the East-West
corridor

Snams geographic footprint
Selective approach to exploit further value
International assets
Domestic pipelines
LNG Terminals
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Optimal Utilization of existing Assets Base
21
TIGF IUK
EPS contribution 2013
1
: ~1%
Cash payback till Dec 2013
2
: ~19%
Represents last section of the South-North
corridor connecting to the continental grid one
of the major European gas markets
Bi-directional flow capacity provides flexibility
and diversification of supply sources to UK
and Continental Europe
1
Including the J V acquisition of 51% stake in Interconnector Zeebrugge Terminal SCRL and of 10% stake in Huberator SA
2
Calculated on purchase price
Represents a leg of the East-West corridor
Strategic opportunities
Exploit French gas area unification through strong
competitive position of storage business
De-bottlenecking of Spanish LNG import capacity
Provides diversification of regulatory risk
EPS contribution: ~1% in 2014, ~2% in medium
term
Expected low double digit return on financial
investment
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PEG
South
PEG
North
PEG
TIGF
Well on track with the acquisition plan targets
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

United Kingdom
Netherlands
Belgium
France
Bacton
Zeebrugge
TAG: a perfect fit in Snam strategy to integrate the East-West gas corridor
TAG is the pipeline bringing
Russian gas from
Austrian/Slovak border
(Baumgarten) to Italy
(Arnoldstein-Tarvisio)
3 lines of 380 km (1,140 km
overall length) and 5
compression stations
47.5 bcm/year transport capacity
Acquisition of the entire stake held by CDP in TAG GmbH (currently 89%)
Negotiation: started
m 2012

Revenues 286.0
Net profit 77.2
Total Shareholders Equity 203.4
Total assets 688.9
Key financials

Technical features
Memorandum of Understanding main contents
Source: CDP 2012 Annual Report
Due diligence: activities in progress
Equity method consolidation of TAG (joint control with the local Austrian partner)
Update on the potential transaction
SELECTIVE
INVESTMENTS
ITALY
Transport
Storage
Distribution

EUROPE

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Austrian/Italian
Border OP Border
Slovakian/Austrian
Border IP Border
AUSTRIA
22
Day ahead "bundled" services

Harmonized capacity services
from EU network codes

Capacity in "oversubscription"

"Short-cycle" storage services
CAPACITY BALANCING
Intensive cooperation with
GME

Launch of spot and futures
markets

European Capacity Platform
GAS EXCHANGES
Extension to new flexibilty
resources (import and LNG)

Introduction of a new
day-ahead balancing session

Incentive mechanisms on
demand forecasts and
information provision
Development of new services
2014 2017
4 regulatory period
New potential Services to enhance Snams Role
as System Operator and Market Facilitator
SELECTIVE
INVESTMENTS

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

23
24
2013 2017 CONTROLLABLE FIXED COSTS
FLAT IN REAL TERMS
KPI 2013- 2017 CAGR*
TRANSPORT
Controllable fixed costs/
network Km

- 1%
DISTRIBUTION
Controllable fixed costs/
n. redelivery points

Flat
STORAGE
Controllable fixed costs/
m
3
working gas

- 2%
Operational Efficiency: a solid baseline to value creation
* Real terms with inflation rate assumption of 2% in 2014-2017
SELECTIVE
INVESTMENTS

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

A solid Balance Sheet to support a sustainable
and low risk Growth Path
25
Snam Ratings
Rating Outlook
Moodys Baa1 stable
S&Ps BBB+ negative
Snams key credit metrics 2012 2013
Net Debt/(RAB+associates)

51.7% 53.3%
FFO
1
/ Net Debt 11.4% 12.3%
2012 2013
Available committed funding ca. 3 bn in excess of 4 bn
2
A solid Investment grade profile
Firm commitment to current credit rating
metrics
Confirmation of Debt/ Fixed Assets guideline
of 55% over 2014-2017
Sound, visible and resilient cash flow
generation
Focused capital allocation policy
Disciplined investment attitude supported by a
wide portfolio of investment opportunities
Efficient working capital management
Fair and stable regulatory framework
Commitment to strong liquidity profile:
To adequately cover debt repayment schedule
To support a convenient approach in DCM
To provide comfortable financial flexibility
1
Based on reported figures before change in working capital. If the non recurring cost of the unwinding of IRS is not taken into account, the 2012 ratio would improve to 13.2%.
2
As at 31 Dec. 2013. Net of the outstanding debt of around 1 billion euro of uncommitted facilities.
-100 -80 -60 -40 -20 0 20 40 60 80 100
4 J uly 2012 (4y)
12 J uly 2012 (6,5y)
10 September 2012 (5,5y)
10 September 2012 (10y)
13 November 2012 (3y)
13 November 2012 (7,2y)
3 April 2013 (4,2y)
3 April 2013 (7,8y)
2 September 2013 TAP 2017
3 September 2013 TAP 2020
14 J anuary 2014 (10y)
Issue premium/discount vs BTPs at pricing date
SELECTIVE
INVESTMENTS

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

A Debt Structure consistent with Snams Business
and Regulatory Profile
2011 2012 2013
Fixed-floating rate debt 77%-23% 49%-51% 64%-36%
Average M/L term debt over 4 years 5 years 5 years
Significant fixed rate debt portion
Limited exposure to interest rates
Consistency with Snams business and regulatory profile
Locking in todays debt cost levels without renouncing to
future flexibility
Focused management of maturities
No major refinancing exercises until 2015
New actions to be completed in the short term to pre-fund
our 4-year investment plan
Maturities well distributed over time
Average life of our M/L term debt 5 years
Appropriate mix of funding sources to achieve
diversification benefits and adequate balance between:
Competitive costs and long tenors mainly via institutional
lenders and DCM and
Flexibility via the banking system
8.7
50% 7.4
42%
1.3
8%
Dec. 2013 - Committed funding (17.4 bn )
Bond
Banking financing
Institutional lenders financing
8.7
65%
3.3
25%
1.3
10%
Dec. 2013 - Outstanding debt (13.3 bn )
Bond
Banking financing
Institutional lenders financing
SELECTIVE
INVESTMENTS

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

Fixed rate debt: 2/3 of total outstanding debt
M/L term debt maturity: 5 years for outstanding debt
Breakdown by source of outstanding debt:
~ 10% institutional lenders
~ 70% DCM
~ 20% banking facilities
Cost of debt: further improvement vs. 2013 based on current market
conditions
2014-2017 guidelines
26
Confirming Profitable Growth.
Operating cash flow to finance
asset growth
Leverage (D/RAB+associates)
expected at around 55% in
plan period
27
Equity RAB
expected to grow
in line with RAB
2013E 2014E 2015E 2016E 2017E
RAB with higher remuneration
RAB with base remuneration

CAGR 3.3%
31%
37%
RAB with higher remuneration
up to 37% in 2017
Exploit further operational and
financial efficiency
Increasing contribution of
associates
Further increase
of profitability
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SELECTIVE
INVESTMENTS

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

and robust Shareholder Returns
28
Well diversified portfolio of
investment options
Selective investments
execution
Financial results supported by
increasing return on assets
Sustainable and attractive
level
Single payment in May
Growth Dividend
Preserve credit rating metrics
in order to maintain a solid
investment grade profile
Financial discipline
Annual DPS of 0.25
in 2014 and in 2015
Snams equity story is underpinned by growth and dividend
to drive a top ranking TSR
SELECTIVE
INVESTMENTS

OPERATIONAL
EFFICIENCY

FINANCIAL
DISCIPLINE

ATTRACTIVE
RETURNS

29
Q & A S e s s i o n
30
Snams Chief Financial Officer, Antonio Paccioretti, in his position as manager responsible for the preparation of financial reports, certifies
pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forth correspond
to the companys evidence and accounting books and entries.

This presentation contains forward-looking statements regarding future events and the future results of Snam that are based on current
expectations, estimates, forecasts, and projections about the industries in which Snam operates and the beliefs and assumptions of the
management of Snam.
In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs,
return on equity, risk management are forward-looking in nature.
Words such as expects, anticipates, targets, goals, projects, intends, plans, believes, seeks, estimates, variations of such words, and
similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because
they relate to events and depend on circumstances that will occur in the future.
Therefore, Snams actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors
that might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic and regulatory
developments in Italy and internationally.
Any forward-looking statements made by or on behalf of Snam speak only as of the date they are made. Snam does not undertake to update
forward-looking statements to reflect any changes in Snams expectations with regard thereto or any changes in events, conditions or
circumstances on which any such statement is based.
The reader should, however, consult any further disclosures Snam may make in documents it files with the Italian Securities and Exchange
Commission and with the Italian Stock Exchange.
Disclaimer
snam.it
2014 2017 Strategy & Targets



March 19
th
, 2014